Logistics service provider LBC Express Holdings is spending some $8.55 million to acquire four affiliate US-based cargo and remittance firms, as part of a bid to expand its overseas business.
The biggest of these US affiliates is LBC Mundial Corp., which operates as a cargo and remittance company in California. LBC agreed to purchase this affiliate for $6.86 million, LBC told the Philippine Stock Exchange (PSE) yesterday.
The PSE deems this transaction as a “substantial” acquisition that is covered by the disclosure rules for substantial acquisitions and reverse takeovers.
As such, trading of LBC shares was suspended on the PSE yesterday pending additional information on this acquisition.
“The acquisition is expected to benefit the company by contributing to the global revenue stream of the company,” LBC said.
Another affiliate acquired by LBC was LBC Mabuhay North America Corp., which operated as a cargo and remittance company in New Jersey. This was acquired for $1.136 million.
The two other affiliates were LBC Mabuhay Hawaii Corp., bought for $342,000 and, LBC Mabuhay Saipan, $207,652.
The acquisitions are based on fair market valuation, LBC said.